Dropbox, Inc.

Thank you. As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Peter Stadler, Head of Investor Relations. Please go ahead, sir.

Good afternoon, and welcome to Dropbox's fourth quarter 2025 earnings call. As a reminder, we will discuss non-GAAP financial measures on this call. Definitions and reconciliations between our GAAP and non-GAAP results can be found in our earnings release and our earnings presentation posted on our IR website, at investors.dropbox.com. We will also make forward-looking statements on this call, including statements about our future outlook for our first quarter and fiscal year 2026, as well as our expectations regarding our business, assets, strategies, and the macroeconomic environment. Such statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those described. Many of those risks and uncertainties are described in our SEC filings, including our most recent and forthcoming reports on Form 10-K. Forward-looking statements represent our beliefs and assumptions only as of the date such statements are made. We disclaim any obligation to update any forward-looking statements except as required by law. I will now turn the call over to Dropbox's CEO and co-founder, Drew Houston.

Thanks, Peter, and good afternoon, everyone. Welcome to our Q4 2025 earnings call. Joining me today is Ross Tennenbaum, our chief financial officer who joined Dropbox in December. I'll start with a recap of the quarter and how we close out 2025, and then I'll talk about how we're thinking about the business and our priorities going forward. Ross will then walk through our financial results and outlook. We closed out 2025 on a strong note. Fourth quarter revenue came in above the high end of our guidance and excluding the impact of our forms with wind down. and others. Constant currency revenue is flat for the quarter and the full year, which is a better than expected outcome. We also made meaningful progress on efficiency. Margin performance in Q4 exceeded our expectations, and we generated over a billion dollars of unlevered free cash flow. At the same time, through our share of a purchase program, we produced diluted share count by more than 50 million shares in 2025. Taken together, Q4 was a good reflection of what we're working to do consistently, which is execute well, Deliver against our plans and steadily improve the underlying trajectory of the business. And in 2025, our priorities were focused on strengthening our core business and scaling Dash in pursuit of returning to revenue growth. We're still executing on these objectives, but now have proof points that these changes are starting to work. Coming into last year, our core FSS business had strong fundamentals and scale, but execution velocity, product experience, and our go-to-market motion had not kept pace with customer expectations. So in late 2024 and early 2025, we did a leadership reset in core FSS, bringing in a new general manager and rebuilding key leadership across product, engineering, and go-to-market. Since then, we've made significant improvements in how decisions get made, how we prioritize customers, and how we deliver value. And we're beginning to see positive signals. The team first focused on improving funnel quality, pricing and packaging, product fundamentals, and retention drivers. As a result, the individual's business saw steady growth across 2025. That matters because it demonstrates that the core product can still respond to focused innovation and better retention and growth are achievable with the right execution. And so our objective for 2026 is to maintain our momentum with the individual's business and return teams to positive net license growth. Work already underway includes simplified pricing and packaging, higher intent trials, reduced onboarding and admin friction, and a sharper focus on retention. Some early tests in Q4 showed some promising signs, including improved change trial conversion rates and higher first week engagement, and we began rolling these changes out more broadly in Q1. But in short, we're not simply maintaining our core FSS business. Our goal is to bend the curve. In 2025, we delivered proof points, and 2026 is about scaling that momentum. Our next focus area is what we call Dash and Dropbox, which represents the most important evolution of the core FSS experience in years. Dash and Dropbox provides an AI intelligence layer directly inside our customers' everyday workflows with minimal setup and immediate relevance. In Q4, we launched embedded Dash capabilities inside our team's plans, including semantic search, chat, and stacks organization and sharing, and we're rolling it out in phases to eligible Dropbox Teams customers. We're seeing solid early engagement among the initial Dash and Dropbox cohorts. In Q4, over half of these active users returned multiple days per week, which is evidence that Dash is providing value and becoming a part of user workflows. And based on these results, we've begun scaling up our rollout to additional customer cohorts. Dash and Dropbox increases the value of core FSS. It should further improve retention economics and serves as a natural on-ramp to broader Dash adoption. This is the most credible and immediate way that AI creates value for Dropbox FSS customers today. Now turning to our plans to scale the Dash standalone opportunity. And while it's true that we've introduced different iterations of Dash experience over the last two years, the sequencing of our rollout was intentional to ensure we build and scale the business and products thoughtfully. First, we focused our investment on building a best-in-class Dash product experience, including investments in its underlying infrastructure and performance. Then we focused on launching two growth motions for Dash, the sales-led motion that launched in late 24 and the self-serve version that launched in Q4 of last year. Now we're focused on engagement and adoption before we focus on monetization. The good news is we're seeing positive early signals of demand. At the same time, we're clear-eyed that onboarding friction, time to value, and the experience around connecting your apps need to improve. So in the first half of 26, we're focused on improving the new user experience to demonstrate connector value from first touch. We're investing in Stacks as a sharing-driven growth engine, and we're compressing the time between sign-up and first value in your Dash experience. Next, historically, Dropbox has been primarily a product-led growth company. We have a sales-led motion today, but it needs meaningful improvement given our broader products portfolio. In December, we hired Eric Webster as our new chief business officer. His mandate is to evolve and improve our existing sales-led motion into one capable of selling multiple products with the right funnel, process, and enablement. That includes Core FSS, Dash, both standalone and bundled, and other emerging products. Protect and Control is showing particular promise. As every company works to roll out AI tools safely, admins are confronting critical security challenges with overshared content and improper use of consumer AI tools. We're in a unique position to help these customers. By complementing our Dash offering with Protect and Control, we can both index customer data and use the underlying context engine to power capabilities that prevent authorized sharing and access beyond our secure perimeter. Capitalizing on this emerging demand, we closed a six-figure international deal for Dash's Protect and Control features in Q4, and we expect Protect and Control to play an important role across our portfolio in years to come as AI data security emerges as both a standalone opportunity and an AI adoption enabler. Stepping back, here's how all this comes together. Our core FSS business is stabilizing and showing credible paths back to growth. Dash is both a force multiplier for core and a standalone AI opportunity while sales-led growth and AI data security expand our addressable market. Together, these vectors give us multiple paths to drive modest but meaningful growth and enough to shift the narrative to durability and progress. So in closing, 2025 laid the foundation. Now, 2026 is about execution, scaling while it's working, improving consistency. We're realistic about the work ahead, but confident in the direction, the team, and the opportunity in front of us. Lastly, I'd like to acknowledge the many contributions of Tim Regan, our departing CFO, and thank him for making Ross's transition a smooth one. So with that, I'll turn over the call to Ross to walk through our fourth quarter results and our outlook.